Electronic trading system for simulating the trading of carbon dioxide equivalent emission reductions and methods of use

• US 7,529,705 B1
• Filed: 09/28/2001
• Issued: 05/05/2009
• Est. Priority Date: 08/21/2001
• Status: Expired due to Fees

• Current Assignee: Cantorco2e LLC (Cantor Fitzgerald, L.P.)
• Original Assignee: Cantorco2e LLC (Cantor Fitzgerald, L.P.)
• Inventors: White, legal representative, Turnage, legal representative, Bartels, legal representative, White, Adam, Bartels, Carlton
• Primary Examiner(s): Kazimi; Hani
• Assistant Examiner(s): Kesack; Daniel
• Application Number:
  US09/967,272
• Time in Patent Office: 2,776 Days
• Field of Search: 705/37,80,26,35,1,500
• US Class Current: 705/37
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange

Abstract

An electronic trading system for simulating the trading of carbon dioxide equivalent (CO₂e) emission reductions and methods of use are provided. An electronic trading application may allow a user to participate in an electronic trading simulation. An electronic trading application may allow a simulation administrator to modify parameters in connection with the electronic trading simulation in real-time. For example, the simulation administrator may be allowed to modify a real-time timeline for the electronic trading simulation, create and release a news announcement, or perform any other suitable modification in connection with the electronic trading simulation.

Claims

1. An apparatus comprising a computing device programmed to:

store for a computer-based representation of a first entity an amount of available cash;

receive from an administrator a representation of a marginal abatement cost curve, in which the marginal abatement cost curve comprises an indication of an amount of money for the first entity to produce internal reductions of carbon dioxide equivalent emissions;

based on a request received from a first user, generate for the first entity a computer-based representation of a volume of internal reductions of carbon dioxide equivalent emissions that the first entity may produce;

calculate, based on the marginal abatement cost curve, a cost for the generated volume of internal reductions of carbon dioxide equivalent emissions;

based on the cost for the generated volume of internal reductions of carbon dioxide equivalent emissions, decrease for the first entity the amount of available cash;

based on a command received from the first user, purchase for the first entity credits of carbon dioxide equivalent emission reductions;

based on the purchased credits of carbon dioxide equivalent emission reductions, decrease for the first entity the amount of available cash; and

cause the amount of available cash for the first entity to be displayed to the first user.

2. The apparatus of claim 1, in which the computing device is further programmed to:

store for a computer-based representation of a second entity an amount of available cash;

receive from the administrator a representation of a supply cost curve, in which the supply cost curve comprises an indication of an amount of money for the second entity to produce reductions of carbon dioxide equivalent emissions, in which the reductions of carbon dioxide equivalent emissions produced by the second entity result in credits of carbon dioxide equivalent emission reductions that may be traded by the second entity;

based on a request received from a second user, generate for the second entity a computer-based representation of a volume of credits of carbon dioxide equivalent emission reductions;

calculate, based on the supply cost curve, a cost for the generated volume of credits of carbon dioxide equivalent emission reductions;

based on the cost for the generated volume of credits of carbon dioxide equivalent emission reductions, decrease for the second entity the amount of available cash;

based on a command received from the second user, sell for the second entity at least a portion of the generated volume of credits of carbon dioxide equivalent emission reductions;

based on the sale of the at least portion of the generated volume of credits of carbon dioxide equivalent emission reductions, increase for the second entity the amount of available cash; and

cause the amount of available cash for the second entity to be displayed to the second user.

3. The apparatus of claim 2,

in which the first user and the second user are permitted to trade credits of carbon dioxide equivalent emission reductions during at least one trading session, in which the trading session comprises a duration of time;

and

in which the computing device is further programmed, in response to an indication received from the administrator, to modify the duration of time.

4. The apparatus of claim 3, in which the computing device is further programmed to modify the duration of time during the trading session.

5. The apparatus of claim 2, in which the computing device is further programmed to:

store a volume of credits of carbon dioxide equivalent emission reductions owned by the first entity;

store a volume of credits of carbon dioxide equivalent emission reductions owned by the second entity;

receive from the administrator a simulated event; and

change, based on the simulated event, at least one of;

the volume of credits of carbon dioxide equivalent emission reductions owned by the first entity, and

the volume of credits of carbon dioxide equivalent emission reductions owned by the second entity.

6. The apparatus of claim 5, in which the simulated event comprises a simulated news announcement.

7. The apparatus of claim 6, in which the computing device is further programmed to cause the simulated news announcement to be displayed to at least one of the first user and the second user.

8. The apparatus of claim 6, in which the computing device is further programmed to:

upon receiving the simulated news announcement from the administrator, store the simulated news announcement, in which the simulated news announcement comprises a release time specified by the administrator; and

cause the simulated news announcement to be displayed to at least one of the first user and the second user at the release time.

9. The apparatus of claim 6, in which the computing device is further programmed to:

cause an interface screen to be presented to the administrator, in which the interface screen includes at least one field for creating the simulated news announcement; and

receive from the administrator a value for the at least one field.

10. The apparatus of claim 9, in which the at least one field comprises an amount by which the at least one of the volume of credits of carbon dioxide equivalent emission reductions owned by the first entity, and the volume of credits of carbon dioxide equivalent emission reductions owned by the second entity should change.

11. The apparatus of claim 2, in which the computing device is further programmed to:

receive from the administrator a change to the marginal abatement cost curve;

based on another request received from the first user, generate for the first entity a computer-based representation of an additional volume of internal reductions of carbon dioxide equivalent emissions that the first entity may produce;

calculate, based on the changed marginal abatement cost curve, a cost for the additional generated volume of internal reductions of carbon dioxide equivalent emissions; and

based on the cost for the additional generated volume of internal reductions of carbon dioxide equivalent emissions, decrease for the first entity the amount of available cash.

12. The apparatus of claim 11, in which the computing device is further programmed to:

receive from the administrator a change to the supply cost curve;

based on another request received from the second user, generate for the second entity a computer-based representation of an additional volume of credits of carbon dioxide equivalent emission reductions;

calculate, based on the changed supply cost curve, a cost for the additional generated volume of credits of carbon dioxide equivalent emission reductions; and

based on the cost for the additional generated volume of credits of carbon dioxide equivalent emission reductions, decrease for the second entity the amount of available cash.

13. The apparatus of claim 2,

in which command received from the first user comprises at least one of:

a bid to buy credits of carbon dioxide equivalent emission reductions, and

a trade to buy credits of carbon dioxide equivalent emission reductions; and

in which the command received from the second user comprises at least one of;

an offer to sell credits of carbon dioxide equivalent emission reductions, and

a trade to sell credits of carbon dioxide equivalent emission reductions.

14. The apparatus of claim 1, in which the computing device is further programmed to:

receive from the first user a request to form the first entity; and

in response to the request, form the computer-based representation of the first entity.

15. The apparatus of claim 1, in which the computing device is further programmed to:

receive from the first user a request to review a position of the first entity; and

in response to the request, cause to be displayed to the first user an interface screen in which the interface screen comprises;

a first value representing a volume of carbon dioxide equivalent emissions emitted by the first entity;

a second value representing at least a portion of the generated volume of internal reductions of carbon dioxide equivalent emissions; and

a third value representing at least a portion of a volume of credits of carbon dioxide equivalent emission reductions owned by the first entity.

16. The apparatus of claim 1, in which the computing device is further programmed to:

receive from the first user a request to review a simulated news announcement; and

in response to the request, cause the simulated news announcement to be displayed to the first user.

17. The apparatus of claim 1,

in which the first user is permitted to trade credits of carbon dioxide equivalent emission reductions during trading sessions;

and

in which the computing device is further programmed to;

receive from the first user a request to review a timeline of trading sessions; and

in response to the request, cause to be displayed to the first user an interface screen in which the interface screen comprises;

an indication of a first trading session, in which the indication of the first trading session comprises a start time, an end time, and a designation that the first trading session has completed; and

an indication of a second trading session in which the indication of second trading session comprises a start time, an end time, and a designation that the second trading session is executing.

18. The apparatus of claim 1,

in which the first user is permitted to trade credits of carbon dioxide equivalent emission reductions during trading sessions;

and

in which the computing device is further programmed to;

receive from the first user a request to review a report at an end of a trading of credits; and

in response to the request, cause to be displayed to the first user an interface screen in which the interface screen comprises;

an indication of a first trading session, in which the first trading session comprises a volume of credits of carbon dioxide equivalent emission reductions purchased by the first user for the first entity during the first trading session; and

an indication of a second trading session, in which the second trading session comprises a volume of credits of carbon dioxide equivalent emission reductions purchased by the first user for the first entity during the second trading session.

19. The apparatus of claim 1, in which the computing device is further programmed to:

store a volume of credits of carbon dioxide equivalent emission reductions owned by the first entity; and

receive from the administrator a simulated event in which the simulated event causes a monetary value of at least a portion of the volume of credits of carbon dioxide equivalent emission reductions owned by the first entity to change.

20. The apparatus of claim 19,

in which the volume of credits of carbon dioxide equivalent emission reductions owned by the first entity comprises a volume of allowances of carbon dioxide equivalent emissions;

in which the volume of allowances of carbon dioxide equivalent emissions comprises a volume of carbon dioxide equivalent emissions the first entity is allowed to release; and

in which the at least portion of the volume of credits for which the monetary value changes comprises the volume of allowances of carbon dioxide equivalent emissions.

21. The apparatus of claim 1, in which the computing device is further programmed to:

store a volume of credits of carbon dioxide equivalent emission reductions owned by the first entity;

receive from the administrator a simulated event; and

change, based on the simulated event, the volume of credits of carbon dioxide equivalent emission reductions owned by the first entity.

22. The apparatus of claim 21,

in which the volume of credits of carbon dioxide equivalent emission reductions owned by the first entity comprises a volume of allowances of carbon dioxide equivalent emissions;

in which the volume of allowances of carbon dioxide equivalent emissions comprises a volume of carbon dioxide equivalent emissions the first entity is allowed to release; and

in which to change the volume of credits comprises to change the volume of allowances of carbon dioxide equivalent emissions.

23. The apparatus of claim 1, in which the computing device is further programmed to:

receive from the administrator a representation of an interest rate for borrowing money;

add to the amount of available cash for the first entity a loan to cover at least one of;

the cost for the generated volume of internal reductions of carbon dioxide equivalent emissions, and

the purchased credits of carbon dioxide equivalent emission reductions; and

charge the first entity a cost for the loan based on the interest rate.

24. The apparatus of claim 1, in which the first entity comprises a country.

25. The apparatus of claim 1, in which the computing device is further programmed to:

receive from the first user a request to review a position of the first entity; and

in response to the request, cause to be displayed to the first user an interface screen in which the interface screen comprises a value representing a compliance requirement for the first entity, in which the compliance requirement comprises a difference between a volume of carbon dioxide equivalent emissions emitted by the first entity and a combination of at least a portion of the generated volume of internal reductions of carbon dioxide equivalent emissions and at least portion of a volume of credits of carbon dioxide equivalent emission reductions owned by the first entity.

26. The apparatus of claim 25, in which the at least portion of the volume of credits of carbon dioxide equivalent emission reductions owned by the first entity comprises a volume of allowances of carbon dioxide equivalent emissions, in which the volume of allowances of carbon dioxide equivalent emissions comprises a volume of carbon dioxide equivalent emissions the first entity is allowed to release.

27. The apparatus of claim 26, in which the compliance requirement comprises a volume of carbon dioxide equivalent emission reductions the first entity must achieve to avoid a penalty.

28. The apparatus of claim 27, in which the computing device is further programmed to:

receive from the administrator a representation of the volume of carbon dioxide equivalent emissions emitted by the first entity; and

receive from the administrator a representation of the volume of allowances of carbon dioxide equivalent emissions.

29. The apparatus of claim 1, in which the generated volume of internal reductions of carbon dioxide equivalent emissions does not result in credits of carbon dioxide equivalent emission reductions that may be traded by the first entity.